Question

Show calculations if applicable:

12 Required information (The following information applies to the questions displayed below.] 0.83 points eBook Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Print

Answer 1

Statement of cash flow
Cash flows from operating activities
net income					112,175
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation expense					27,750
loss on sale of Equipment					12,125
increase in account receivable					-18715
increase in inventory					-27356
Decrease in prepaid expense					755
Decrease in accounts payable					-65034
net cash provided by operating activities						41,700
Cash from investing activities
cash from sale of Equipment					18,625
cash for purchase of Equipment					-44000
Cash used fro investing activities						-25,375
Cash from financing activities
Cash from short term notes payable					4,700
Cash paid for long term notes payable					-53,625
Cash from stock issue					64000
paid cash dividend					-51,500
Cash used for financing activity						-36,425
Net decrease in cash						-20,100
Cash at the beginning og the year						80500
Cash at year end						60,400